Target CEO Steps Down Amid Business Slump and Consumer Revolt

Brian Cornell will step down as chairman next year as the retailer struggles to fend off a patronage loss due to the dilution of its DEI efforts.

Target reported better-than-expected revenue and comparable store salesCredit: Kevin Carter / Getty Images

Target's chief executive officer is stepping down. The embattled retail behemoth is attempting to engineer a comeback in the face of a customer revolt over its pullback on diversity, equity, and inclusion (DEI) efforts. Brian Cornell's replacement will be the current chief operating officer. This change will take place next year, the company revealed on Wednesday.

Cornell is widely credited with boosting the retailer after taking over as CEO in 2014. Still, he has struggled to turn around sagging sales in the increasingly cutthroat, post-pandemic retail environment. It's been quite a fight. Sales at Target, which has almost 2,000 stores across the country, dropped more than anticipated in the first quarter of 2025. The retailer sounded a gloomy warning earlier this year that this commercial contraction will continue well into the fiscal period.

Target has blamed the decline on widespread consumer fear about the effects of tariffs and economic fragility. But the company also admitted that vocal customer boycotts have made a financial impact. The divide stemmed from the company's move in January to shut down many of its DEI initiatives after getting slammed for them by conservative activists and the White House. The withdrawal created a powerful protest. Americans Shop Differently as Traders Shift Business Back to a Loyalty to Trump. A poll conducted last month revealed that Americans had changed their shopping habits, boycotting certain businesses after corporations updated their policies to reflect the Trump era. This summer, there were reports of broad-based boycotts, including of a "Target Fast" started by Rev. Jamal Bryant that amassed over 250,000 commitments. This follows the company doing the same thing in 2024 when they cut their LGBTQ-themed gear for Pride Month in the face of right-wing disapproval.

The financial repercussions are stark. Net income fell 2.1% at Target in the second quarter of this year. Total sales were down a bit, and the company recorded a 1.9% decline in comparable sales. Now, with the most recent stretch, this vital metric is stagnant or down in eight of the last ten quarters.